Chances are that where you own a flat in Headley you actually own a long leasehold interest over your property
Leasehold residencies in Headley with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Headley can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Headley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Thomas, started to get near to the eighty-year threshold with the lease on his garden flat in Headley. In buying his property two decades ago, the length of the lease was of no importance. As luck would have it, he became aware that he would soon be paying way over the odds for a lease extension. Thomas extended the lease just ahead of time in June. Thomas and the landlord who owned the flat above in the end settled on sum of £5,000 . If he not met the deadline, the amount would have become more costly by at least £1,050.
Mr and Mrs. G Evans completed a recently refurbished apartment in Headley in July 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable homes in Headley with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected monthly. The lease ran out in 2077. Given that there were 51 years left we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.
Last Autumn we were approach by Ms A Khan , who bought a one bedroom flat in Headley in August 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Identical homes in Headley with a long lease were worth £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out in 2097. Having 71 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.